Competing and Collaborating at the Periphery

The lack of presence of large businesses in the peripheral regions of Sri Lanka, unlike in the core Western Province, underscores the importance of Small and Medium Enterprises (SMEs) for regional economic growth and development. Despite their importance, knowledge about SMEs in peripheral regions such as in the fragile post-conflict contexts of the North and East of Sri Lanka remains relatively low. This paper fills an important gap in knowledge on key challenges faced by SMEs in the North and East of the country. It highlights the reasons why sustainability, growth and long-term viability of large sections of SME businesses in the peripheral areas appear to be in doubt. Moreover, it justifies the need to provide targeted and sector-based support through respective value chains, the policy environment and social integration.